Tag Archives: Toys R Us

Billionaire Brainstorm—or Boondoggle? MGA’s Issac Larian Enters Formal Offer to Purchase U.S. and Canadian Toys ‘R’ Us Stores and Remake Them Into a “Mini Disneyland in Every Neighborhood”

Billionaire Hopes to Preserve “Toys ‘R’ Us Experience” for His Grandson’s Generation

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Isaac Larian— MGA Entertainment mogel and owner of the “Bratz” line of dolls (Photo: Mediatly)

In a bizarre twist to the ongoing Toys ‘R’ Us bankruptcy saga, billionaire Isaac Larian of MGA Entertainment has offered to purchase over 280 of the 735 Toys ‘R’ Us locations currently facing imminent and permanent closure for a whopping $887 million. Why, you might ask, would ANYONE want to spend all that money on what appears to be a dying “brick-n-mortar” business model showing NO hope of surviving in today’s digital “get it now” Amazonian shopping age? For the latest on this unexpected and constantly evolving story, we refer you to a story posted yesterday over on the CNN website (HERE) which reveals the following surprising intel:

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“Isaac Larian said Friday that he’s entered a formal offer of $675 million to buy many of the Toys “R” Us stores in the United States, along with an additional $215 million for Toys “R” Us stores in Canada. Larian is looking to buy more than 200 of the remaining 735 locations in the US, and almost all of more than 80 locations in Canada, a spokesperson said. Larian, who runs MGA Entertainment, will use his own money for the bid, along with financing from banks and additional investors, according to a press release. ‘The liquidation of Toys ‘R’ Us is going to have a long-term effect on the toy business. The industry will truly suffer,’ he said in a statement. ‘The prospect of bringing the Toys ‘R’ Us experience to a new generation, my new grandson’s generation, is enough to motivate me to Save Toys ‘R’ Us.’ Toys “R” Us declined to comment.”

Can you imagine being ready, willing and ABLE to spend $887 million dollars—of your own money—to prevent some 280 Toys ‘R Us stores from closing? Is Larian truly serious? It appears so. The CNN article goes on to reveal that the billionaire’s long-term strategy for saving 280 failing stores goes far beyond providing a heartfelt or nostalgic shopping “experience” for his grandson’s generation. Here’s what his plans REALLY are:

Larian’s vision for Toys ‘R Us includes turning its stores into entertainment hotspots. ‘We will make Toys ‘R Us an experience in and of itself; a fun and engaging place where families can spend an entire day,” he said in his statement on Friday. ‘Imagine a mini-Disneyland in each neighborhood.”

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Been There, Done That— Larian’s concept of converting old Toys ‘R’ Us stores into “Mini-Disneylands” has already been tried—and failed. This one, the chain’s flagship store in New York City’s bustling Times Square district, was big enough to fit a ferris wheel inside! Guess what? Yup. It’s closed now. If this mega-store concept didn’t work in Times Square, with all of its never-ending foot traffic, how could it succeed elsewhere? How much do you think they’d have to mark-up TRU toys to pay for all of this? Perhaps Larian should give his ambitious plan a teeny bit more thought. (Photo: tripadvisor) Click to enlarge.

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Can You See Them NOW?— Before closing, the TRU flagship store in NYC also had the added benefit of a giant, wraparound video marquee. Can you imagine something like this surrounding Larian’s proposed 280 “mini-Disneylands” in the U.S. and Canada? Would such a monumental investment in time, material, and CASH really be worth it? Or is the lure and ease of “one-click” and “add to cart” online shopping simply too powerful for “brick-n-mortar” retailers to overcome? (Photo: tripadvisor) Click to enlarge.

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Welcome to Barbie Town— You’ve heard of the famous (also now gone) “Barbie Aisle,” right? Well, how about an entire Barbie TOWN? This amazing retail display was also in the NYC TRU store before it closed. Imagine a similar structure built by Hasbro called the “GIjOE PX” or something like that, full of Joes, Jeeps, equipment sets and more. Hey, we can dream, can’t we? (Photo: tripadvisor) Click to enlarge.

Bottom Line: This is all so FASCINATING. And hopeful. And exciting! But will ANY of it actually come to pass? Will Larian’s offer be accepted? Will he really spend even MORE of his own money to convert a bunch of aging Toys ‘R’ Us stores into 280 “mini-Disneylands?” It’s been tried in major cities already, and sadly, it’s failed. To be honest then, its doubtful much will come of this new development. But don’t lose hope, dear readers. We’ll keep you updated as this ever-changing, high-stakes, and “quixotic” tale of money, family, and TOYS continues to unfold. Stay tuned!

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This is Gunna Be BRUTAL—The Hard Truths & Facts Behind the Demise of Retailing Giant, Toy’s ‘R Us

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In a fictional parallel to the real-world woes currently facing 31,000 Toys ‘R Us employees, Jack Nicholson’s character in the film, Broadcast News (1987), waits and watches, while all around him, fellow co-workers receive their pink slips during a company-wide, mass layoff. (Photo: 20thCF)

Bottom Line: Today, we’re keeping it VERY simple and jumping straight to the “bottom line.” Here then, is the so-called, “red ink,” regarding the harsh facts and realities of this sad event (as they are currently known to us) according to a story today on CNN:

  1. The news that Toys “R” Us is closing might conjure up wistful childhood memories for shoppers. But for the chain’s 31,000 U.S. employees, it means they’re out of a job.

  2. Mass layoffs are usually softened with a severance package, but Toys “R” Us employees won’t get any because of bankruptcy laws. They will get benefits such as health insurance and matching 401(k) payments from the company.

  3. Workers were promised 60 days pay, which is required under federal law, and they’ll receive that pay even if they don’t work the full two months.

  4. Traditional retailers are on the ropes, with a record 7,000 stores closing last year, according to Coresight Research. That’s more than triple the number of closings in 2016.
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Toys ‘R Us Preparing to Call it Quits in the U.S. Toy Business—Complete U.S. Liquidation Coming Soon

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If every one of his stores close, Toys ‘R’ Us’ mascot, “Geoffrey” may soon be a homeless company mascot. (Graphic: Toys ‘R’ Us)

Attempts to “Find a Buyer” Evaporated

Prepare for the end, boys and girls…

It appears that Toy’s ‘R Us (TRU) has failed in its ongoing efforts to restructure its debt and will be forced into complete liquidation of its assets as early as next week. This will include the closing and selling off of its entire chain of U.S. retail stores. The profound economic “ripple effects” that will occur are sure to hit toy manufacturers hard, as well as an untold number of smaller toy companies and distributors. According to today’s article in the UK’s Daily Mail:

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“It’s anticipated that toy manufacturers will suffer if Toys ‘R’ Us does liquidate in the U.S., as the company accounts for about 15 per cent of American toy sales. In addition, Toys ‘R’ Us was known for giving small companies and new products a chance, whereas other toy-selling retailers, such as Walmart and Target, prefer to go with tried-and-true merchandise.” —UK Daily Mail

Bottom Line: There’s not much more we can say on this matter at this point. Toy fans around the U.S. are surely aghast at the prospect of losing ALL of its Toy’s ‘R Us stores. We thought at least a few would remain open, but that appears to be wishful thinking on our part. If you’d like to read the entire article in today’s UK Daily Mail, jump HERE now.

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Shutting Down—Toys ‘R Us Confirms Imminent Closure of 180+ Stores—Official List Released

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Toys ‘R’ Us mascot, “Geoffrey” (already “retired”), is looking a little less upbeat these days, after hearing the news that 180 more of his company’s stores will close in 2018. (Graphic: Toys ‘R’ Us)

Bottom Line: Well, now we have some real numbers to reflect upon. In yet another (depressing) follow-up to our previous articles discussing Toys ‘R Us and its filing for bankruptcy, the former powerhouse toy retailer has just released a (startlingly) long list of imminent store closures—180 in total. The first of their stores to close will do so as early as next month (February), with the remainder having done so by the end of April, 2018. We wonder—Is this the first 2018 list of TRU closures—or the last? Will this dramatic action save the company from oblivion—or merely prolong the inevitable? Only time will tell. How will YOUR particular area be affected? Hold your breath and scan the company’s official closure list provided below (arranged alphabetically by states):

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Alabama

2600 McFarland Blvd. East, Tuscaloosa AL

335 Summit Blvd., Birmingham AL

Arizona

801 W. 32nd Street, Yuma AZ

12801 North Tatum Blvd., Paradise Valley AZ

9139 Indian Bend Rd., Scottsdale AZ

4619 N. Oracle Rd., Tucson AZ

7000 E. Mayo Blvd., Scottsdale AZ

US 60 and Signal Butte Rd., Mesa AZ

Arkansas

2616 S. Shackleford Rd., Little Rock AR

California

42500 Jackson St., Indio CA

1189 Simi Town Ctr. Way, Simi Valley CA

26573 Carl Boyer Dr., Santa Clarita CA

960 Lakes Dr., Covina CA

1600 S. Azusa Ave., Puente Hills CA

2575 E. Imperial Highway, Brea CA

530 Westminster Mall, Westminster CA

20120 Hawthorne Blvd., Torrance CA

2550 Canyon Springs Pkwy S., Riverside CA

700 “A” Onstott Rd., Yuba City CA

2785 E. Bidwell St., Folsom CA

1330 Fitzgerald, Pinole CA

4505 Century Blvd., Pittsburg CA

600 Francisco Blvd., San Rafael CA

5461 Lone Tree Way, Brentwood CA

1400 Gateway Blvd., Fairfield CA

3938 Horton, Emeryville CA

2179 Monterey Hwy., E. San Jose CA

865 Blossom Hill Rd., San Jose / Almade CA

3520 W. Shaw Ave., Fresno CA

31250 Court House Dr., Union City CA

10640 Trinity Pkwy., Stockton CA

3900 Bristol Street, Santa Ana CA

3665 Grand Oaks, Corona CA

1240 W. Morena Blvd., Mission Bay CA

8181 Mira Mesa Blvd., Mira Mesa CA

1990 University Drive, Vista CA

Colorado

1150 S. Ironton, Aurora CO

Connecticut

376 North Universal Drive, North Haven CT

275 Union St., Waterbury CT

3491 Berlin Turnpike, Newington CT

169 Hale Road, Manchester CT

Delaware

1061 N. Dupont Highway, Dover DE

Florida

1625 Apalachee Pkwy., Tallahassee FL

1900 Tyrone Blvd., St. Petersburg FL

3908 West Hillsborough Avenue, Tampa FL

6001 Argyle Forest Blvd., Orange Park FL

Spring 708 West State Rd. 436, Altamonte FL

21697 State Road #7, Boca Raton FL

10732 SW Village Pkwy., Port St. Lucie FL

450 South SR 7, Royal Palm Beach FL

2601 W.Osceola Parkway, Kissimmee FL

6001 West Sample Road, Coral Springs FL

3214 N John Young Pkwy., Kissimmee FL

Georgia

2601 Dawson Rd., Albany GA

2955 Cobb Parkway, Smyrna GA

6380 No. Point Parkway, Alpharetta GA

1155 Mt. Vernon Hwy., Dunwoody GA

6875 Douglas Boulevard, Douglasville GA

8160 Mall Parkway, Conyers GA

221 Newnan Crossing Bypass, Newnan GA

132 Pavilion Parkway, Fayetteville GA

Indiana

3928 E 82nd Street, Indianapolis IN

8800 US 31 South, Greenwood IN

Iowa

1211 E. Army Post Rd., S. Des Moines IA

8801 University Ave., Des Moines IA

Illinois

1610 Deerfield Rd., Highland Park IL

16 East Golf Rd., Schaumburg IL

295 Center Drive, Vernon Hills IL

5001 Lincoln Highway, Matteson IL

6420 W. Fullerton, Bricktown IL

7750 South Cicero Avenue, Burbank IL

5660 Touhy Avenue, Niles IL

Kansas

4646 W. Kellogg, Wichita KS

8500 W 135th Street, Overland Park KS

Kentucky

4900 Shelbyville Rd., St. Mathews KY

1155 Buck Creek Rd., Simpsonville KY

1965 Star Shoot Parkway, Lexington KY

Louisiana

137 Northshore Blvd., Slidell LA

Maine

6 Bangor Mall Blvd., Bangor ME

200 Running Hill Road, Portland ME

Maryland

8401 Mike Shapiro Drive, Clinton MD

Massachusetts

302 Providence, Dedham MA

70 Worcester Providence Tpk/Rt. 146, Millbury MA

50 Holyoke Street, Holyoke MA

217 Hartford Ave., Bellingham MA

6110 Shops Way, Northborough MA

Shoppers World Plaza, 1 Worcester Road, Framingham MA

Michigan

5363 Harvey Street, Muskegon MI

2620 Crossing Circle, Traverse City MI

5900 W. Saginaw Highway, Lansing MI

4923 28th Street South East, Grand Rapids MI

3725 Carpenter Road, Ann Arbor MI

3725 Washtenaw, Ann Arbor MI

Minnesota

14100 Wayzata Blvd., Minnetonka MN

170 89th Ave., Blaine MN

8236 Tamarack Village, Woodbury MN

900 West 78th Street South, Richfield MN

Mississippi

1003 Bonita Lakes Circle, Meridian MS

200 Bass Pro Dr., Pearl MS

Missouri

1901 Bernadette, Columbia MO

201 Silver Springs Rd., Cape Girardeau MO

5590 St. Louis Mills Blvd., Bridgeton MO

220 THF Blvd., Chesterfield MO

Nebraska

3505 S. 140th Plaza, Omaha NE

Nevada

2150 North Rainbow Blvd., Las Vegas NV

7020 Arroyo Crossing Parkway, Spring Valley NV

New Mexico

45 Hotel Circle, Albuquerque NM

North Carolina

801 Fairview Road, Asheville NC

7001 Fayetteville Road, Durham NC

3300 Westgate Drive, Durham NC

New Hampshire

29 Gusabel Avenue, Nashua NH

New Jersey

1280 Rt. 22 & St. James Ave., Phillipsburg NJ

137 Route 35, Eatontown NJ

100 Promenade Blvd., Bridgewater NJ

2700 Route 22 East., Union NJ

909 US Hwy 1 South., North Brunswick NJ

Rt. 541 & Cadillac Road, Burlington NJ

2135 Route 38, Cherry Hill NJ

7 Wayne Hills Mall, Wayne NJ

545 Route 17 South, Paramus NJ

98 Route 10 West., East Hanover NJ

Kids World 900 Center Drive, Elizabeth NJ

50 International Drive South, Mt. Olive NJ

New York

139-19 20th Ave., College Point NY

24-30 Union Square E, Union Square NY

5181 Sunrise Hwy., Sayville NY

5214 Sunrise Hwy., Massapequa NY

2335 Marketplace Drive, Henrietta NY

1569 Niagara Falls Blvd., Buffalo NY

401 Frank Sottile Boulevard, Kingston NY

708 Upper Glen St., Glens Falls NY

221 Wade Road Extension, Latham NY

2700 Central Park Ave., Yonkers NY

66 Metropolitan Ave., Middle Village NY

1350 Corporate Drive, Westbury NY

108 Veterans Memorial Highway, Commack NY

461 Lycoming Mall Cir, Williamsport NY

1530 Ridge Rd. West, Greece NY

Ohio

6251 Glenway Ave., Western Hills OH

2661 Miamisburg-Centerville Rd., Dayton OH

7841 Mentor Ave., Mentor OH

3610 West Dublin-Granville Rd., Dublin OH

Oklahoma

1119 SE 66th St., Oklahoma City OK

5609-E Rogers Ave., Fort Smith OK

560 Ed Noble Pkwy., Norman OK

Pennsylvania

100 Welsh Road, Horsham PA

6680 Peach St., Erie PA

3700 William Penn Highway, Monroeville PA

104 Bartlett Ave., Exton PA

2003 Cheryl Dr., Ross Park Mall PA

301 Oakspring Road, Washington PA

18/Valley View Dr., Beaver Valley Route PA

Rhode Island

300 Quaker Lane, Warwick RI

South Carolina

254 Harbison Boulevard, Columbia SC

South Dakota

450 E. Disk Drive, Rapid City SD

Tennessee

7676 Polo Ground Blvd., Memphis TN

5731 Nolensville Rd., Nashville TN

Texas

801 Mesa Hills Dr., West El Paso TX

9730 Katy Freeway, Houston TX

170 E. Stacy Road, Allen TX

7730 N. MacArthur Blvd, Irving TX

420 E. Round Grove Rd., Lewisville TX

13710 Dallas Parkway, Dallas Galleria TX

1309 W. Pipeline Rd., Hurst TX

5800 Overton Ridge Blvd., Hulen TX

Utah

4042 Riverdale Rd., Ogden UT

1122 Fort Union Boulevard, Midvale UT

Virginia

14173 Crossing Place, Potomac Mills VA

12153 Jefferson Ave., Newport News VA

Washington

3567 N.W. Randall Way, Silverdale WA

1325A S.E. Everett Mall Parkway, Everett WA

6104 N. Division Street, Spokane WA

Wisconsin

18550 W. Bluemound Rd., Brookfield WI

2161 Zeier Road, Madison WI

 

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Ripple Effects of Chapter 11 Filing By Toys ‘R Us Begin to Spread to Manufacturers— Declining Profits Now Reported By Hasbro and Mattel

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Where are all of our customers? As the number of independent toy retailers and their “brick-n-mortar” stores continues to decline, toy manufacturer claims that their own lost profits could be made up with rising internet or “online” sales has now proven to be questionable—even unlikely. Should toy manufacturers such as Hasbro consider opening their own retail store outlets to compensate?

To most toy fans and collectors, this latest news will not come as much of a surprise. In fact, current developments regarding the world’s ongoing toy retailing saga may seem all too predictable, but here we go nonetheless: It turns out, having fewer retail stores for customers to visit and browse for products (like toys) can actually be bad for business. <Wow. Who’d a thunk it?> In fact, following closely on the heels of the recent story of Toys R Us’ (TRU) filing for Chapter 11 bankruptcy protection, we now also learn that Hasbro and Mattel (both) are beginning to feel their own negative economic ripple effects—and that they believe their troubles can be laid squarely at the doorstep of TRU’s earlier woes. According to the AP:

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“Mattel, the maker of Barbie dolls and Hot Wheels cars, reported disappointing third-quarter results late Thursday and said it was hurt by Toys R Us’ Chapter 11 bankruptcy filing last month. Earlier this week, Hasbro, the maker of My Little Pony and Monopoly, also blamed weak results on the Toys R Us bankruptcy filing.

Mattel, whose revenue in North America fell 22 percent in the three months ending Sept. 30, said that about half of that decline was due to the Toys R Us bankruptcy. Globally, most of its brands saw sales declines. Barbie sales fell 7 percent and Hot Wheels fell 6 percent. Sales of its American Girl brand, whose 18-inch dolls typically cost more than $100, fell 30 percent.” —AP

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Will Matty need a handout? Looks like this company mascot is extending his hand for…what? Will his business soon seek court protection, ala Toys R Us?

Whoa. 30 percent?  That’s quite a financial nosedive. And if ever a particular toy brand needed a store’s support (i.e. an actual, physical PLACE to go to) so as to be able to SEE and HANDLE their extensive and upscale line), it’s pricey American Girl. Anyway…

Bottom Line: If TRU’s Chapter 11 reorganization and debt payoff difficulties continue, it seems likely that additional store closings and employee layoffs industry-wide could also continue. That would result in even fewer “brick-n-mortar” toy stores, less actual shelf space for toys, and then ultimately, fewer toys overall for fans and collectors to buy and enjoy. Ouch! That’s where WE feel “the pinch.” We’re not too worried about the financial stability of either Hasbro or Mattel (they’re doing just fine, thank you), but this situation is fluid and developing. Stay tuned for further intel. Read the AP story HERE.

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No More Toy Stores? Toys ‘R Us Going Bankrupt

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Going, Going… GONE? Someday very soon, a simple trip to a neighborhood toy store may become a nostalgic memory from America’s past. In yet another startling measure of the growing number of consumers switching over to online purchasing, retailing giant, Toys ‘R Us, recently announced that it is seeking Chapter 11 bankruptcy protection. Though safe for now, all of the company’s colorful stores may soon be shuttered—and completely empty. (Photo: gettyimages)

Bottom Line: Toys ‘R Us (TRU), has officially filed for Chapter 11 bankruptcy protection (see complete details HERE). Sadly, we saw this event coming along YEARS ago. As more and more consumers have chosen to “shop” for bargains online and purchase their toys on the internet, web-retailing powerhouses such as Amazon and Walmart (and many, many others) have continued to drain away TRU’s financial stability and perilously erode its market share.

Indeed, TRU’s once-dominant, nation-wide chain of “brick-n-mortar” toy stores is now facing a dire and uncertain future. Faithful readers of The Joe Report will recall we first reported on TRU’s mounting fiscal woes waaaay back in 2014 (see that story HERE), and since that time, the company’s situation has only continued to weaken. It’s too soon to “call the game” on this sad story, and we’ll continue to monitor developments, but if current market trends are any indication, we don’t expect news to improve for America’s once mightiest—but now FAILING—toy chain.

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